Pradhan Mantri Awas Yojana (PMAY) | UPSC IAS IPS IFS

In this article, we will discuss about another Indian government scheme called Pradhan Mantri Awas Yojana (PMAY). The Indian government created housing facilities for slum dwellers through the Housing for All scheme. The Ministry of Housing and Alleviation of Urban Poverty in India introduced it. Additionally called the Pradhan Mantri Awas Yojana. For those who meet the requirements, it is available to both urban and rural residents.


Pradhan Mantri Awas Yojana (PMAY) | UPSC IAS IPS IFS

Pradhan Mantri Awas Yojana (PMAY) | UPSC IAS IPS IFS

Also Read: Integrated Processing Development Scheme (IPDS) | UPSC IAS IPS IFS

The government programme Pradhan Mantri Awas Yojana (PMAY), which strives to provide affordable housing for everyone, has as its goal the construction of 20 million such homes by the end of March 2022. On June 1st, 2015, the Pradhan Mantri Awas Yojana, or "Housing for All," was introduced. In accordance with this plan, low-cost, environmentally friendly homes will be constructed in urban areas for the impoverished people who live there. A similar programme was then introduced in 2016 for the rural populace with the aim of providing shelter for everyone by 2022.


Pradhan Mantri Awas Yojana (Urban) (PMAY-U)

The Pradhan Mantri Awas Yojana-Urban (PMAY-U) is a flagship mission of the Indian government being carried out by the Ministry of Housing and Urban Affairs (MoHUA). The Mission seeks to alleviate the lack of urban housing among EWS/LIG and MIG categories, including slum dwellers, by guaranteeing a pucca house to all qualified urban households by 2022, by then the country would have achieved 75 years of independence.

The Housing deficit under Pradhan Mantri Awas Yojana(U) is determined based on demand assessments made by the States and Union Territories. The primary players who contribute significantly to the implementation and success of Pradhan Mantri Awas Yojana(U) are State Level Nodal Agencies (SLNAs), Urban Local Bodies (ULBs), Implementing Agencies (IAs), Central Nodal Agencies (CNAs), and Primary Lending Institutions (PLIs).

The Mission encompasses the entire urban region, including Statutory Towns, Notified Planning Areas, Development Authorities, Special Area Development Authorities, Industrial Development Authorities, or any other State-authorized body with responsibility for urban planning and regulation. Basic utilities like a bathroom, kitchen, water supply, and power are provided in every Pradhan Mantri Awas Yojana(U) home.

By allowing female members or joint members to own homes, the Mission supports women's empowerment. Additionally, people with disabilities, the elderly, SC, ST, OBC, minority groups, single women, transgender people, and other weaker & more vulnerable groups in society are given preference. The recipients of a Pradhan Mantri Awas Yojana(U) house are guaranteed a decent standard of living, as well as a sense of security and pride in their home.

PMAY(U) utilizes a cafeteria approach to fit the demands of individuals depending on geographical factors, topography, economic situations, availability of land, infrastructure etc.


Components of PMAY (U)

a) In-situ Slum Redevelopment (ISSR)

All dwellings constructed are eligible slum residents under the ISSR component using land as a resource with the involvement of private developers are eligible for central assistance of Rs. 1 lakh per house. The rules suggest that the State/UT Government de-notify slums after rebuilding. States and cities are allowed the freedom to use this central assistance for the redevelopment of additional slums.

To ensure that projects are financially sustainable, states and cities contribute more FSI, FAR, or TDR. States and cities grant additional FSI/FAR or TDR to landowners for slums on privately owned land in accordance with their policies. In this situation, no Central Assistance is permitted.


b) Credit Linked Subsidy Scheme (CLSS)

Beneficiaries of the Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG-II), and other such institutions, are eligible for interest subsidies of 6.5%, 4%, and 3% on loans up to Rs. 6 lakh, Rs. 9 lakh, and Rs. 12 lakh, respectively, for purchasing, building new homes or improving existing homes.

In order to distribute this subsidy to the beneficiaries through lending institutions and to track the progress, the Ministry has designated the Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB), and State Bank of India (SBI) as Central Nodal Agencies (CNAs).

Pradhan Mantri Awas Yojana (PMAY) | UPSC IAS IPS IFS 2


c) Affordable Housing in Partnership (AHP)

The Indian government offers Central Assistance under AHP in the amount of Rs. 1.5 lakh every EWS dwelling. A project for affordable housing may include a mix of homes for various income levels, but it will only be qualified for Central Assistance if at least 35% of the project's homes fall under the EWS category.

With the intention of making EWS homes inexpensive and accessible to the intended beneficiaries, the States/UTs decide on an upper limit on the sale price of EWS homes. Other incentives are also offered by the state and localities, including their state share, inexpensive land, stamp duty exemption, etc.


d) Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E)

Eligible households from EWS categories are given central assistance up to Rs. 1.5 lakh per EWS dwelling for home building or improvement. In order to determine land ownership and other information like economic situation and eligibility, the Urban Local Bodies validate the building plan and information that the beneficiary has provided.

Direct Benefit Transfer (DBT) is a method used by States/UTs to distribute Central Assistance to beneficiaries' bank accounts along with any applicable State/UT/ULB share.


Beneficiaries to the scheme

  • The mission aims to solve the housing needs of urban poor people, particularly slum residents. A slum is described as a densely populated area with at least 300 people, or 60 to 70 homes, that is poorly constructed, crowded, and located in an unsanitary environment without enough infrastructure or access to sanitary or drinking water amenities.
  • Economically weaker sections (EWS), low-income groups (LIGs), and middle-income groups (MIGs) are among the beneficiaries. For EWS, LIG, and MIG, the yearly income cap is Rs 3 lakh, Rs 3-6 lakh, and Rs 6 + -18 lakhs, respectively. While LIG and MIG categories are only eligible under the Credit Linked Subsidy Scheme (CLSS) component of the Mission, the EWS group of beneficiaries is eligible for assistance in all four verticals of the Missions.
  • An individual loan applicant will provide a self-certification/affidavit as evidence of income to identify themselves as an EWS or LIG beneficiary under the scheme.
  • A beneficiary family consists of a husband, a wife, and any unmarried sons or daughters.
  • For the beneficiary family to qualify for central aid under the mission, neither they nor any of their family members may own a pucca house in any region of India.
  • Houses are offered with female members or joint names as proprietors.
  • Preference is also given to people who are differently abled, elderly people, SC, ST, OBC, minority, single women, transgender, and other weaker & more vulnerable groups in society.
  • Every qualified beneficiary under every aspect of the programme must have an Aadhaar or Aadhaar Virtual ID, and these details must be connected.
  • States and UTs have the ability to set a deadline by which recipients must reside in the urban area in order to be eligible for the program's benefits.
  • The number of slum families is expected to increase to 18 million at the 34% decadal growth rate for slum areas. The Mission is expected to assist 2 million urban poor households who do not live in slums. Thus, a 20 million housing need is anticipated to be addressed by the new objective.


Scope of the scheme

  • The Mission encompasses the entire urban region, including Statutory Towns, Notified Planning Areas, Development Authorities, Special Area Development Authorities, Industrial Development Authorities, or any other State-authorized body with responsibility for urban planning and regulation.
  • The "Housing for All" Mission for the urban region is being executed during 2015-2022 and this Mission will provide central assistance to implementing agencies through States and UTs for delivering dwellings to all eligible families/beneficiaries by 2022.
  • Except for the credit related subsidy component, which will be implemented as a central sector scheme, the mission will be implemented as a centrally sponsored scheme (CSS).


Pradhan Mantri Awas Yojana (Gramin) (PMAY-G)

The rural housing programme Indira Awas Yojana was updated, and Pradhan Mantri Awas Yojana(G) was launched on November 20, 2016, in order to meet the objective of Housing for All by 2022. This programme offers financial support for the construction of pucca houses for all homeless households and rural households residing in run-down structures. By 2022, the government hopes to have constructed 4 crore pucca dwellings under this programme.


Identifying the Beneficiaries

  • The Socio-Economic and Caste Census (SECC), 2011, housing deprivation indicators, which are confirmed by the Gram Sabhas, are used to identify and rank the beneficiaries.
  • The SECC data pinpointed the households' specific housing-related disadvantages.
  • The Gram Sabha will be given the collected list to identify the beneficiaries who have received assistance in the past or have become disqualified for other reasons.



In plain areas, the cost of unit assistance is split 60:40 between the Central and State Governments, and 90:10 in northeastern and hilly states.



  • Gram Sabha certification and the SECC of 2011's transparent procedure serve as the foundation for beneficiary identification.
  • Unit Size: The minimum unit (home) size was 20 m2, but now it is 25 m2.
  • Provision of amenities: When the house is done, it will include amenities such as bathrooms, an LPG connection, an electricity connection, and running water.
  • Financial assistance: Under the programme, beneficiaries receive Rs. 1,20,000 in plain areas and Rs. 1,30,000 in hilly states with challenging terrain and districts that are part of the Integrated Action Plan (IAP) for Selected Tribal and Backward Districts.
  • Loan: If the beneficiary so chooses, a bank loan of up to Rs. 70,000 is also an option.
  • Direct Benefit Transfer: Due to the implementation of DBT for aid payments, houses are built more quickly.
  • Implementation: AwaasSoft and Awaas App are used for PMAY-G implementation and monitoring.
  • Geo-tagging: This plan's entire construction phase is being tracked using information technology and space technology. As they are geo-tagged, it identifies the construction stages and the beneficiaries.
  • Monitoring: In addition to electronic monitoring, this program's operation is also kept an eye on by Central and State government officials, members of the parliament (DISHA committee), and members of the community (Social Audit).
  • National Technical Support Agency is suggested for enhancing building quality.
  • Convergence with Swachh Bharat Mission: Through convergence with the Swachh Bharat Mission, assistance (Rs. 12,000) is made available.
  • Merging with MGNREGA: Those who benefit from this programme are eligible for 90 days of unskilled work under MGNREGA.
  • Merging with Skill India: To improve the availability of qualified masons in remote regions, Rural Mason Training has been organised.



I) Based on Definition, Beneficiaries and Area Restrictions 

Criteria PMAY-U PMAY-G
Definition PMAYU is a program that aims to provide 2 crore houses in urban areas. PMAYG is a program that aims to provide 4 crore houses in rural areas
Beneficiaries Economically disadvantaged groups, middle-class groups, and low-income groups are among the beneficiaries. Beneficiaries are selected by Gram Sabhas in villages based on the Socio-Economic and Caste Census.
Area restrictions EWS applicants are qualified for homes with a 322 square foot carpet space. The allocated carpet space is 645 square feet for lower-income people. The carpet area covered by houses in rural areas will be at least 269 square feet.


II) Based on No. of planned houses, selection, fund allocation and home sizes

Criteria PMAY-U PMAY-G
No. of planned houses 2 crore 4 crore
Selection Applicants must meet income eligibility criteria Applicants are selected by the gram sabha as per the Socio-Economic and Caste Census
Fund allocation
  • Slum rehabilitation grant: Rs. 1 Lakh per house
  • EWS: Rs. 6 Lakhs
  • LIG: Rs. 6 Lakhs
  • MIG-I: Rs. 9 Lakhs
  • MIG-II: Rs. 12 Lakhs
  • Plains: Rs. 1.2 Lakhs
  • Remote areas: Rs. 1.3 Lakhs
Home sizes
  • EWS: 322 sq ft
  • LIG: 645 sq ft
  • MIG-I: 1722 sq ft
  • MIG -II: 2152 sq ft
Minimum size 269 sq ft


Challenges under the PMAY scheme

  • Real estate development has a very low participation rate, which is one of the causes of the implementation's slowness since private players, who rely heavily on it, lack the motivation to engage.
  • The inability to source materials in bulk results in higher building costs.
  • One of the main obstacles to this flagship project is the lack of land on which to construct homes.
  • The involvement of states and urban local authorities in the implementation of this scheme is essential to its success. While some states have taken part, others are less eager because of political reasons.
  • The approval of construction projects is delayed.
  • The implementation in larger states like Uttar Pradesh and Haryana has not yet begun.
  • Sometimes the recipients are eager to rent the properties they have acquired and relocate back to slums. Similar issues are faced by the majority of the Union Territories and North Eastern States.
  • Land ownership records in India are extremely weak.
  • Additionally, this scheme is having trouble reaching its goals because banks and NBFCs are reluctant to accept requests from the ministry for assistance in providing extra money to process subsidy claims. Without a land title or ownership record, one cannot be eligible for the interest subsidy.


Way forward 

  • By including the private sector in the public-private partnership paradigm, the programme may be implemented more effectively and quickly.
  • In order to facilitate long-term financing for the real estate sector, the government must award infrastructure status to the whole sector.
  • The GST rate should be 6% for all dwelling types.
  • Subsidized land must be made available in metro areas and tier 1 cities in order for housing projects to be financially viable.
  • Permissions and clearances must be obtained at a lower cost and in less time.
  • One of the biggest obstacles to this plan is the lack of accessible, affordable land.
  • The Public Sector Undertakings' surplus land must be utilized to carry out this plan. Unused land may be sold by the local government for this project.
  • The government may decide to construct apartments rather than pucca houses to address the issue of land scarcity.
  • The Center can offer incentives to the states to sell or allot this undeveloped property for the construction of affordable housing.
  • The process for amending property records has to be digitized and made simpler by the states. The landowners will be able to access the legal records for their property and land as a result.
  • The public must be made aware of the advantages of this programme.
  • To prevent the same person from receiving multiple benefits under the plan, a central database must be created for all beneficiaries.
  • In order to leverage the rental market to accomplish "Housing for All by 2022", reforms must be done.

A home is a basic need shared by all. But for many Indians, owning or living in a decent house remains a distant dream. The political desire to resolve this problem is significantly more crucial than any other factor preventing the dream from coming true. The objective of the PMAY must be realized by filling up the gaps left by the combined efforts of the public and private sectors.

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